Solved by verified expert :2)
If the economy grew at 7% from 2011 to 2012 and real GDP was 400 in 2011, what
was real GDP in 2012?
A)
393
B)
400
C)
407
D)
428
3)
Suppose that nominal GDP in year 1 is 200 and nominal GDP in year 2 is 242.
Assume that inflation is 10% per year. How fast did the economy grow between
these two years?
A)
10%
B)
12%
C)
21%
D)
42%
Use the following information to answer the next
several questions:
Scenario 1:
Imagine that an economy produces two goods, flashlights and fishing lures. In
2011, the economy produced 70 flashlights and 40 fishing lures, and the prices
of flashlights and fishing lures were $5 and $12, respectively. In 2012, the
economy produced 85 flashlights and 50 fishing lures, and the prices of
flashlights and fishing lures were $7 and $15, respectively.
4)
Based on the information in Scenario 1, nominal GDP in 2011 in this economy was
A)
$830.
B)
$1,025.
C)
$1,090.
D)
$1,345.
5)
Based on the information in Scenario 1, nominal GDP in 2012 in this economy was
A)
$830.
B)
$1,025.
C)
$1,090.
D)
$1,345.
6)
Based on the information in Scenario 1, real GDP in 2012 (in 2011 dollars) in
this economy was
A)
$830.
B)
$1,025.
C)
$1,090.
D)
$1,345.
7)
Based on the information in Scenario 1, nominal GDP grew by about ________%
from 2011 to 2012.
A)
23
B)
31
C)
62
D)
162
8)
Based on the information in Scenario 1, real GDP grew by about ________% from
2011 to 2012.
A)
23
B)
31
C)
62
D)
162
9)
When GDP is measured in “current prices” it is known as the
A)
real GDP.
B)
nominal GDP.
C)
real GNP.
D)
nominal GNP.
10)
When the GDP is measured using “adjustments for price changes” it is
known as the
A)
real GDP.
B)
nominal GDP.
C)
real GNP.
D)
nominal GNP.
11)
A chain-weighted index
A)
is used to understate the rate of inflation.
B)
uses neighboring years’ data to calculate changes in nominal GDP.
C)
calculates changes in prices by using an average of base years from neighboring
years to obtain a more accurate measure of real GDP growth.
D)
is a useful tool for determining which fence to purchase.
